IT Budgeting

IT Budgeting

Webinar Replay: Best Practices for IT Portfolio Budgeting

IT Portfolio Budgeting

If you were unable to attend our recent webinar, a replay is now available.

IT budgeting is anything but simple, so why do so many organizations do it in an overly simplistic way? Instead of relying upon detailed task-based spreadsheets and wild guesses, IT budgeting should be leveraging historical data and predictive modeling. This webinar will discuss the business process and application of estimation to the challenges of building the annual IT budget. Presented by QSM Co-CEO and industry expert Doug Putnam, the webinar will focus on how this process can support the following aspects of portfolio management:

  • Pipeline - Demand Management
  • Risk Management
  • Resource Management
  • Financial Management

Doug Putnam will demonstrate how a macro-level estimation process can leverage the very basic information typically available early in the development cycle to generate release level budgeting information. He will then show how to aggregate the releases to provide portfolio level assessment and adjustments that will conform to business level constraints. This webinar will be useful for anyone involved in or responsible for building the annual IT budget. 

Watch the replay!

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IT Budgeting Webinars

New Webinar: Best Practices for IT Portfolio Budgeting

Webinar presented by Doug Putnam on Wednesday, Oct. 12 at 1:00 PM EDT.

IT budgeting is anything but simple, so why do so many organizations do it in an overly simplistic way? Instead of relying upon detailed task-based spreadsheets and wild guesses, IT budgeting should be leveraging historical data and predictive modeling. This webinar will discuss the business process and application of estimation to the challenges of building the annual IT budget. Presented by QSM Co-CEO and industry expert Doug Putnam, the webinar will focus on how this process can support the following aspects of portfolio management:

  • Pipeline - Demand Management
  • Risk Management
  • Resource Management
  • Financial Management

Doug Putnam will demonstrate how a macro-level estimation process can leverage the very basic information typically available early in the development cycle to generate release level budgeting information. He will then show how to aggregate the releases to provide portfolio level assessment and adjustments that will conform to business level constraints. This webinar will be useful for anyone involved in or responsible for building the annual IT budget. 

Watch the replay!

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Webinars IT Budgeting

New Article: Five Steps to Taking the Guesswork Out of Project Budgeting

IT Budgeting

IT project budgeting is a necessary evil in every organization, but it’s becoming increasingly apparent that traditional approaches aren’t incredibly effective. It is possible to make this challenging task better by breaking with tradition and thinking about budgeting differently. Today, most organizations approach budgeting in an overly simplistic manner: a manager makes a call for project estimates and receives responses based on expert opinions, task-based spreadsheets, anticipated budget restrictions, available resources, and – let’s face it – wild guesses. Most often, the estimates are nothing more than a collection of hours, with no differentiation by job role or schedule. This inefficient process can result in 40 percent of projects missing their marks, simply because they weren’t budgeted accurately. Let’s take the guesswork out of the equation. In this article for Bright Hub Project Management, QSM's Doug Putnam provides a few simple steps to ensure that your projects remain on point – and on budget.

Read the full article!

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IT Budgeting Articles

Assessing Project Portfolio Risk in IT Budgeting

No one said IT budgeting was easy. It seems like you just finished last year’s budget and now it is time to start all over again. Not only is this task difficult, it is made worse by the fact that most organizations do it in an overly simplistic way. This often results in up to 40% of the projects grossly missing the mark, which wreaks havoc on the enterprise resource plans and results in disappointed business stakeholders.

A large part of successful IT budget planning is identifying grossly unrealistic projects – the ones that are likely to fail and the ones that are ultra conservative and wasteful. Our solution is to perform a basic feasibility assessment on each project as it enters the budgeting process. Ultimately, we will want to make adjustments to these projects, making them more reasonable and improving the overall project performance.

So how is this feasibility assessment done? Start by creating a set of historical trend lines for schedule, effort, and staffing versus size of functionality produced. The trend lines provide a basis for the average capability that could be expected. It also gives us a measure of the typical variability that can be expected. Next, position the initial budget requests against the trend lines. The intention is to identify whether or not the projects are outside of the norm and typical variation; i.e., projects that are high risk or poor value. Figures 1 through 3 highlight some of the techniques used to identify those types of projects.

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Estimation IT Budgeting

How Can We Make Annual IT Budgeting Easier?

One of the things I hear from many c-level managers is how difficult it is and how long it takes to generate reliable resource plans at the enterprise level. Many organizations take months to generate their annual budgets and often times the negotiated budgets end up being unrealistic. To fix this problem we need to combine good capacity planning with good demand management. There are a number of project portfolio management tools to help with the capacity planning. The problem is the numbers will be off if we don’t get the demand management part right.

There are world class demand management tools available that can be used by business decision makers. These tools allow us to come up with empirically based, reliable project and enterprise level resource plans. In the SLIM-Estimate view below you can see the forecasted effort by role by month.

IT Budget Planning

The view below shows the plan being sanity checked with industry data so we can better negotiate our budgets with confidence.

IT Budget Planning

The even bigger news is that we can automatically feed our empirically based demand numbers into our PPM tools, making the job of capacity planning much easier and more reliable. In the view below you can see two separate plans, represented in side by side columns. The original PPM plan was updated automatically from an empirically based and sanity checked plan from SLIM-Estimate.